Question 1159125: Find how long it takes $1000 investment to earn $100 interest if it is invested at 8% interest compounded quarterly. Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! 1100=1000(1+0.08/4)^4n, n is number of years
1.1=1.02^4n
logs both sides
log 1.1=4n log 1.02
divide
log 1.1/log 1.02=4.813=4n
n=1.2 years
rough check--makes $80 the first year and that *1.2=$96, and compounding itself will make it $100.
